EV Demand Not Best in the West
The Green Revolution captivates the world. It’s also changing the transportation industry, leading to a surge in global EV demand.
Tesla’s eccentric CEO dominates news outlets. For most people, he’s top of mind when it comes to clean energy.
Musk sees a very different world in 2038. He believes owning a vehicle without self-driving capabilities will soon be like owning a horse.
To his satisfaction, global EV demand steadily grows.
The World has Over 1.4 Billion Vehicles
2 million of them are plug-ins. This means that just 0.15% of global transportation is battery-powered.
Tesla and its other EV producers face a mammoth challenge. They must make their vehicles more affordable, and create batteries with more storage capacity.
Wish them luck…
When factories decarbonize, carbon emissions in the US will reduce by over 30%.
Europe Is Miles Ahead of the US
The EU is the 2nd market to surpass 1 million EV sales. Scandinavia leads the charge, while Germany shows solid EV growth.
But EV sales in the West lag behind Asia’s superpower.
China boasts over 450 EV manufacturers. The populous nation sold over 770,000 plug-ins last year.
Obviously, the West has some catching up to do.
The EV Revolution is About to Take Off
China recently announced a $47 billion EV technology fund. The move gave market watchers perspective.
The message: China is serious about clean transportation.
This is great news for humanity. The communist state can single-handedly accelerate the EV revolution.
Of China’s nearly 30 million 2017 car sales, nearly 3% were electric. Now, this estimate may seem paltry…except when compared to the US.
Less than 200,000 of 18 million American auto sales were plug-ins in 2017. That’s just 1.1%.
US Tariffs Won’t Hurt Chinese EV Sales
It’s unlikely the Trump Administration’s efforts to limit China’s economy will do much damage.
Rather, China isn’t as reliant on American exports as it used to be.
Consider its Belt & Road Initiative (BRI), a plan to connect China with the world.
And don’t forget about its proven ability to weather economic stagnation.
As a result, China owns over half the world’s existing lithium reserves
Its transportation and energy sectors are primed to reap the benefits of overseas investment. Additionally, large lithium deposits are being found in global exploration and mining operations. These are mostly in Africa, South America and Australia.
The Chinese government wants 100% electric vehicles by 2030
Not surprisingly, Xi Jinping is unlikely to invest heavily in oil and gas projects.
The Chinese government is playing its cards right, as global lithium demand is expected to triple by 2025.
Meanwhile, technological advances increase storage capacity and reduce cost.
EV Demand Grows Exponentially
Surprisingly, a late 2017 executive order goes against Trump’s promise to domestic oil producers.
America’s decision to become self-reliant on lithium exploration and extraction will speed up production. It will also increase EV demand.
The EU’s Desire To Wean Itself Off Russian Oil
Consequently, a lithium supply increase could change the zone’s energy situation. These motivations are promising for plug-in manufacturers.
Hopefully, EVs soon become a staple of middle-class life.
Even more promising: producers of self-driving cars are attracted to the long-term benefits.
Talk about thinking ahead.
Ultra Lithium Inc. A team of lithium experts with a finger on the pulse of clean energy news. Ultra Lithium is a lithium exploration company with holdings in Argentina, Canada and the US (TSX-V:ULI, OTCQB: ULTXF and Frankfurt: QFB).